No franchise statute — so the contract is everything
Ireland has no dedicated franchising legislation: the relationship is governed almost entirely by the agreement, general contract law, competition law and IP law. That cuts one way — the franchisor drafts, the franchisee signs, and the document is usually presented as non-negotiable. Some things still move; knowing which is most of the value of a pre-signing review.
Franchisees: check these before signing
- Fees, all of them — initial fee, ongoing royalties, marketing fund levies, compulsory purchases from nominated suppliers and the margin on them
- Territory — exclusive or not, and whether the franchisor (or its website) can sell into it
- Term and renewal — a 5-year term with renewal at the franchisor's discretion is a licence to renegotiate against you after you've built the business
- Sale of your business — assignment conditions, franchisor consent and pre-emption rights: this clause decides whether you can ever realise what you build (see assignment)
- Termination triggers and post-termination restraints — what ends the agreement, and what you may do afterwards (non-compete limits)
- Personal guarantees — signing as a company but guaranteeing personally means the corporate veil protects nothing
- The disclosure gap — with no statutory disclosure regime, financial projections come with no mandated verification: diligence the network (talk to existing and former franchisees) as hard as the document
Franchisors: protecting the format
A franchise agreement is the operational spine of the network: trade mark licensing and brand standards, the operations manual incorporated by reference (and amendable), supply chain control within competition law limits, quality audit rights, and enforceable — because reasonable — in-term and post-term restraints. The first franchise agreement you issue is the template for the next fifty; drafting it around your actual operations, rather than adapting a UK precedent, is the cheap moment to get it right.
How our fees work
You get a fixed quote in writing before any work starts — no hourly-rate surprises and no meter running while you think. If the scope changes, the quote is revised in writing before we continue. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement. How contract solicitor fees work in Ireland →
Frequently asked questions
Is there a cooling-off period when buying a franchise in Ireland?
No statutory cooling-off period applies to franchise agreements as such. Once signed, you are bound — which is why the review, and the diligence on the network, happen before signature.
Can a franchisor really terminate for any breach?
Agreements often list broad termination triggers, but termination clauses are construed against drastic outcomes and must be exercised in accordance with their terms. The practical question is the cure period: insist on written notice and a reasonable opportunity to remedy for non-fundamental breaches.
What happens to my premises and equipment if the franchise ends?
Whatever the agreement says: options over your lease, buy-back of equipment at written-down value, and de-branding obligations are all standard. Read the exit provisions as carefully as the entry ones — you will meet them eventually, one way or the other.
Talk to a solicitor who reads contracts for a living. Call Mary Molloy Solicitors today.
Whether you are drafting terms for your business, handed a contract to sign, or unsure what a clause commits you to, an early conversation costs little and prevents a lot.
📞 Call 01 5827148Try the Contract Risk Checker
richardoshea@marymolloysolicitors.com · Dublin: The Ormond Building, 31–36 Ormond Quay Upper, Dublin 7, D07 EE37 · Kilkenny: 2 Rose Inn Street, Kilkenny, R95 W58D
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